Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assumethat Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both$440,000 at January 1, 2021. The following information pertains to Yankee during 2021:Net incomeDividends declared and paidMarket price of common stock on 12/31/2021Multiple Choice$2,081,200.What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee?$1,949,200.$220,00066,000$1,847,560.$$26/share

According to the question given, we need to determine the total value of investment.Equity…

Answered: Assume that, on January 1, 2021, Matsui…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,182,952 3,588,700 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par View transaction list Journal entry worksheet < 2 3 4 1 5 273,000 989,950 $9,508,702 6 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.) Note: If no entry is required for a transaction/event, select…
po In 2021, Logic Co. reported net income of $3,345,000. It also declared and paid $813,000 in dividends, $368,000 of which was to preferred stockholders. At the beginning of the year, the company reported common stock shares outstanding of 4,158,000. By the end of the year, their common stock shares outstanding had increased to 8,316,000. Based on this information, what will Logic Co. report as EPS for 2021? (AC 16) O $0.20 O $0.48 O $0.41 O $0.36
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2021. At January 1, 2021, the corporation had outstanding 107 million common shares, $1 par per share. Retained Earnings ($ in millions) 109 Beginning balance Retirement of 7 million common shares for $38 million 2 Declaration and payment of a $0.35 per 98 Net income for the year Share cash dividend 35 Declaration and distribution of a ______6% stock dividend 25_________________________________________…
At the beginning of 2021, Hamilton Company had retained earnings of $320,000. During the year Hamilton reported net income of $75,000, sold treasury stock at a "gain" of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. The amount of retained earnings available for dividends at the end of 2021 was a. $332,000. b. $354,500. c. $327,500. d. $305,000.
WHAT IS THE CORRECT BALANCE OF RETAINED EARNINGS ON DECEMBER 31, 2019?
Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2021–2023. At December 31, 2020, the corporation’s accounts included: ($ in thousands) Common stock, 115 million shares at $1 par $ 115,000 Paid-in capital—excess of par 690,000 Retained earnings 940,000 November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $3.1 million, but were purchased two years previously for $2.7 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5.…
Rodgers Corporation reported basic earnings per share of $1.25 for the year ended December 31, 2019. Rodgers had 8,000 shares of cumulative, nonconvertible $100 par, 12% preferred stock outstanding during all of 2019. The company began 2019 with 200,000 shares of common stock outstanding and ended the year with 400,000 share of common stock outstanding, due to issuing 200,000 shares on July 1, 2019. Net Income for 2019?
Included in the December 31, 2018, Jacobi Comapany balance sheet was the following share holders’ equity section. 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders’ equity section (assume that 2019 net income was $270,000).
Selected information from the accounts of Colossians Co. at December31, 2021 reveals that the total income since incorporation is P420,000; the total cash dividends paid is P130,000; the total value of propertydividends distributed is P30,000; and the excess of proceeds over cost of treasury shares sold is P110,000. In its December 31, 2021 statement of changes in equity, what amount should the firm report as accumulated profits (retained earnings)? A.P260,000B.P290,000C.P370,000D.P400,000 Goliath Company purchased an equipment on January 2, 2017 forP3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? A.P300,000B.P500,000C.P1,200,000D.P1,800,000 Bayabas…
The following information pertains to BFAR Corp. for the year ended December 31, 2021: . Accumulated Profits Free, January 1, 2021: P3,800,000 . Accumulated Profits - Appropriated for contingency, January 1, 2021: P700,000 . Net income for 2021: P2,347,000 . Share dividends declared November 25, 2021 and distributed on December 15, 2021: P370,000 . Cash dividends declared December 1, 2021 and distributable on January 15, 2022: P490,000 Appropriation of accumulated profits for contractual obligations in 2021: P1,500,000 . Reversal of appropriation for contingency in 2021: P700,000 How much is the total Accumulated Profits as of December 31, 2021? .
At the beginning of 2021, Sunland Company had retained earnings of $409000. During the year Sunland reported net income of $108000, sold treasury stock at a “gain” of $35000, declared a cash dividend of $61800, and declared and issued a small stock dividend of 3050 shares ($10 par value) when the fair value of the stock was $20 per share. The amount of retained earnings available for dividends at the end of 2021 was?
Based on the below information prepare a statement of shareholders' equity in a proper format for Rams Ltd. for the year ended December 31, 2020. Rams Ltd. reported the following balances at January 1, 2020: Common shares. $370,000 Preferred shares. 74,000 Contributed surplus 65,000 Retained earnings.. 70,000 Accumulated other comprehensive income. 71,000 Rams' corporate tax rate 31.5% During the year, Rams performed the following: 1. The cumulative effect of the change from straight-line to accelerated depreciation resulted in a reduction to retained earnings of $35,000, before tax. 2. Issued common shares for a proceed of $73,000. 3. Retired 25% of preferred shares outstanding. 4. Earned net income of $496,000 and, 5. Generated other comprehensive income of $22,000. 6. Declared total dividend of $198,400. Prepare a statement of shareholders' equity in a proper format for Rams Ltd. for the year ended December 31, 2020.

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